Many low-budget Southern language films are making a lot of money by licencing streaming rights after becoming unexpected box office smashes. It's a well-known truth that most OTT platforms aren't interested in purchasing films with no major actors, enormous budgets, or recognised banners. Even if they do examine such films, they frequently pay pitiful compensation to the filmmakers.
As a result, an increasing number of independent film producers are taking a risk by refusing to sign OTT arrangements before their films are released. Instead, they release their pictures in theatres first, hoping for a positive reaction before negotiating with OTT outlets. After the picture is successful in theatres, they sell it to the OTT platform that gives them the greatest deal.
However, this method is not without danger. If the picture fails to create an impact in theatres, OTT platforms may be unable to provide the low-cost discounts that were planned before to its debut. Movies like Premalu, Manjummel Boys, and lover were not initially picked up by streaming services before their theatrical debut because they were wary of losing money on multiple big-budget films.
However, after doing well in theatres, these films sold their streaming rights for over double the pre-release amount. According to streaming platform executives, popular films may earn up to 25% of their total box office revenue as a fee. Platforms are increasingly prepared to invest more in films that have already proved successful in theatres. They are also spending in dubbing these films into other languages in order to reach a larger audience.
For example, despite the fact that Manjummel Boys was only released theatrically in malayalam and Telugu, Disney+ Hotstar is streaming the film in numerous languages. Streaming platforms find value in purchasing these unexpected blockbusters since they have demonstrated popularity and need less marketing effort than fresh original material.


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